Business Development Tax Credit (BTC) Program: Refundable tax credits may be provided to eligible businesses that create jobs, make capital improvements, invest in employee training, and/or locate or retain a corporate headquarters facility in Wisconsin. Credits can only be claimed in a tax year in which a company increases net employment in Wisconsin when compared to the previous tax year. This discretionary program provides the following tax credits:
Job Creation: Up to 10% of annual wages paid to eligible employees earning at least 150% of federal minimum wage
Job Training: Up to 50% of eligible training costs
Capital Investment: Up to 3% of capital investment in business personal property; up to 5% of eligible capital investment in real property
Corporate Headquarters: Up to 10% of annual wages of positions created or retained at corporate headquarters facility
Manufacturing and Agriculture Credit: This non-refundable credit is equal to 7.5% of eligible qualified production activities income and may be used to offset state income or franchise taxes. The annual tax credit reduces the company’s effective state corporate income tax rate to 0.4%. Unused credits may be carried forward for up to 15 years.
Enterprise Zone Jobs Tax Credit: Corporate income tax credits are available for companies that create new jobs and make capital improvements at business facilities in designated enterprise zones. This discretionary program provides the following tax credits for up to 12 years:
Job Creation: Up to 7% of annual wages
Job Training: Up to 100% of training costs
Capital Investment: Up to 10% of all capital expenditures
Supply Chain: Up to 1% of supply chain utilization
Business Opportunity Loan Fund (BOLF): Discretionary program provides assistance to businesses that create and/or retain jobs. The funds may be used for construction and expansion; working capital; acquisition of existing businesses, land, buildings, and equipment. Companies that create and/or retain a significant number of jobs may be eligible for loan forgiveness.
Employee Training Programs: The state offers various training programs available for businesses relocating or expanding in Wisconsin, including a customized training program for businesses implementing new technology or production processes.
Computer equipment, machinery and equipment used in manufacturing, and manufacturing, merchant and farm inventories are exempt from property tax. Sales and use tax exemptions are available for manufacturing machinery, equipment and materials, biotechnology and manufacturing research, production fuel and electricity, as well as alternative energy used in manufacturing.
Last updated: June 2017